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Farms, farmers and farming families are interwoven, often across multiple generations. They typically operate within an environment of trust based on family ties, long-term commitment and a shared vision. However, circumstances can change: relationships can break down; couples separate and divorce; family members pass on; individuals disagree about the direction of the enterprise.
Whatever the cause and whatever the circumstances, significant changes within a farm often prompt questions about ownership, profit allocation, inheritance, and property and land. Addressing such questions effectively can be challenging unless there is a formal partnership agreement.
Without a partnership agreement, discussions and assumptions about the relationship between the farm as a business and as a home, the people who make a living from it, and the ownership of specific assets can easily degenerate into acrimonious disputes that threaten both the harmony of the family and the commercial viability of the enterprise itself.
In fact, without a formal partnership agreement, when a dispute arises, you may find yourself subject to the antiquated and lightweight Partnership Act, which dates back to the 19th Century and is based on a very different set of legal precepts than those that guide modern laws.
Our Rural services team have long experience of supporting farming families in developing farming partnership agreements tailored to the individual needs and goals of each farm, enterprise and family. With our deep understanding of the unique challenges and pressures of farming, we will help you to draft an agreement that will resolve and/or head off potential problems.
For more detail about the value of farming partnership agreements, read our blog posts:
Head of Corporate & Commercial
Head of Commercial Dispute Resolution
Associate
Paralegal
Corporate and commercial lawyer and partnership specialist Kirsty Davey looks at a recent case that…
The importance of having a farming partnership agreement in place cannot be emphasised enough, says…
Head of Corporate & Commercial
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